7. Customers
Clubcard is Tesco’s unique
customer loyalty programme.
In 2012 it was more popular
than ever, with over 15.4
million customers.
This is our way of ensuring that
our customer base continues to
demonstrate considerably higher
levels of loyalty than our
competitors.
8. Customers
14%
Based on a survey regarding
retailer’s customers who do
more that 50% shopping
16,2% being loyal to a retailer
19,2%
30,1%
10. Community
Donation of
Charity for
emergency
Alzheimer’s
supplies to 2000
Society &
people, £20
Dementia
financial aid and
Community
3000 relief packs
Roadshow
of goods
Tesco Charity Tesco Charity
Trust & British Red Trust & British Red
Cross donates Cross donates
£50,000 after the £25,000 to Turkish
earthquake in Red Crescent for
Japan to Japanese the survivors of
Red Cross the earthquake
15. People
Tesco is Britain’s largest
private sector employer set to
recruit 440 graduates in the
next 12 months. Next year
Tesco is aiming to increase the
number of graduates by 30%.
3.25 million unemployed
people in UK with 3.75% Biggest ever “Shares
forecast by the end of the in Success” payout
year. The Sunday times with over £225,000
“Top 100 employers in staff across the UK
Britain” named Tesco top receiving a share of a
5 while Waitrose drops £110m.
down from the league
table.
17. Financial Headlines
• UK market situation
• Tesco International
• Financial Highlights
• Tesco steering wheel
18. UK market
• Slow • Affected
recover Non-food
within retail Sales
stocks World-wide
Stock Emergency
Market Tax
Crash
UK New
Competition Planning
Commission Regulations
• Stopped further
development
19. Tesco Bank
2010 – Tesco aimed to emerge into
international banking
Impact of Windfall
Tax
2011 - slowed down the final stage
of Tesco Bank system of
immigration
20. Tesco Bank
Despite the negative economic
market situation and the bank
failures in Belgium, Greece,
Italy and France Tesco Bank
increase the sales by 8.8% to
£1bn.
21. dotcom
Tesco Direct offered access to savings on
thousands of nearly new and used cars at
customers with 2000 Tesco Clubcard points.
The car business is worth £24 billion
each year in UK so Tesco decided to enter
the market.
December was a rough month as
Tesco Direct was attacked by hackers.
This affected our online sales that
were expected to increase by 20%.
22. Telecoms
•Tesco mobile in now operating in
UK, Ireland and Slovakia
•21 September 2011 in
cooperation with Vodafone we
launched a new mobile service in
Hungary.
• 16 December 2011 Tesco
launched “MyEdge” including
Android Google Crome operating
system
• 27 February 2012 recoded sales
of £3 million
23. Group performance
2011-2012
Group sales £ 65.6 bn
Group trading profit £10.32 bn
Underlying profit before tax £3.5 bn
Dividends 12.63 p
24. Growth vs competitors
Tesco
40 Asda
35 J Sainsbury
30 Wm Morrison
25
20
15
10
5
06/07 08/09 10/11 12/13
Despite the difficult economic market
and the decrease of sales, Tesco is still
the leading retailing company in the UK
25. Asia Tesco
International
• 28 February - further develop of shopping
malls in China
- Project value: £170m
• 07 June - new training Academy
- Project capacity: 24.000 staff per year
• 20 November - the planning approvals for Tesco
Mall in China have been halted
due to a sudden change of the
Communist Party
Despite the difficult market situation our business
in Asia in still strong and looks for further
development into the next year
27. Europe Tesco
International
• November 2011 – withdrawal of Italy from the EU
• January 2012 – withdrawal of Greece from the EU
• February 2012 – Bank failures in Belgium,
Greece, Italy and France.
• This situation lead to the collapse of consumer
confidence
28. Winning locally
Europe Applying our
skills globally
Regardless of the difficult economic situation Tesco
manages to maintain a high level of performance
compared with the other European retailers and
did not have to withdraw from any market.
32,9%
67,1 % Sales £9.4bn
Profit £3.1bn
29. USA Tesco
International
• California declared bankruptcy in
December
• Public sector unemployment was
affected
• Customer demand decreased in our
Fresh and Easy stores
• We decided to withdraw from the
market in order to maintain our
company strong and growing
30. Winning locally
USA Applying our
skills globally
Despite the difficult market situation that we had to
face in the USA, Tesco managed to have a positive
economic balance as before the withdrawal we reach a
growth of 14.5% to £5,75 billion compared with £5,02
billion from 2011.
17,9%
82,1%
Sales £5.75bn
Profit £1,03bn
31. The profit of our group
The withdraw from the USA market did
not impacted our trading profit as it was
representing only 1%.
32. Group tax
2011 - 24.3%
Fall in the UK
corporation tax rate
2012 – 23.0%
Deficit reductions plan
of the new Coalition
Government 2013 – 24.0%
33. Group capital expenditure
£0.3bn £0.5bn £1.0bn
UK Bank International
investments investments investments
2011/2012 £2.9 billion
Between 5% and 5.5% of Group sales is our
2013 target of next year capital expenditure.
34. Share price and dividends
World-wide Market crash dramatically influenced the recovery
of the food and drug retailing sector.
Facing this economically situation the Board had approved a
dividend of 12,63p per share.
However, considering the current market conditions we are
still 0.5% above the FTSE 100.
The satisfaction of our 14,46p
shareholders is of extreme 13,05p
11,96p 12,63p
importance to us, so we are
doing everything that is in our
power to maintain the
continuity of our payments
towards the shareholders,
while our competitors had to
stop the dividend payments.
2009 2010 2011 2012
35. Valuable and competitive
• 2nd year in a row Tesco was named top retailer in the world for its
efforts in tackling climate chance according to Carbon Disclosure Project
• Multi-Channel Retailer of the year in “Oracle World Retail Awards” 2011
• “Best Company Award” at the annual BIC (Business in the Community)
36. Summary
• We increased our customer loyalty
• We increased our profits in Banking sector and expecting further
development in the next year
• We developed in telecommunications sector
• We are the leading retailing company on the UK market
• Investments in Asia with encouraging performance despite the political
situation
• Dividends above the FTSE despite the negative economic market
